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WAEC Economics 2018 Objective — Question 34

Question 34 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.

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Holding money to take care of contingencies is a

  • A. speculative motive
  • B. a transactions motive
  • C. a precautionary motiveCorrect
  • D. an expansionary motive

Explanation

Holding money to meet unforeseen/unexpected expenses is the precautionary motive for holding money.

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